sept 24 - September 24 I Audits a External i Generally...

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September 24 I. Audits: a. External i. Generally Accepted Accounting Principles (GAAP) as defined by AICPA: set of standards: 1. accrual accounting 2. matching principle ii. Auditing firm makes either a qualified (bad) or clean (good) opinion iii. Management letter: outlines minor issues/misstatements (i.e. reconcile banks statements each month; value of hedge fund can be overvalued) b. Internal i. As a CFO or program officer, if you think something is wrong, an internal audit can be requested or the external audit firm can request for the organization to do an internal audit II. Accounts receivable = $10 million a. typically should be paid within 30 days, but if they haven’t been paid in 80 days, that’s bad b. auditors look at “allowance for doubtful pledges”: if the organization has $100 million in pledge it needs to make realistic predictions of what amount it will really receive c. “separation of duties”: one person does billing, another accounting, a third something else
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This note was uploaded on 04/25/2009 for the course ILRHR 6605 taught by Professor Grasso during the Fall '09 term at Cornell.

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sept 24 - September 24 I Audits a External i Generally...

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